Mutual funds were not aligned with the ₹4,000 Cr (about $419 Mn) valuation sought by Curefoods during its roadshows, especially due to the current market conditions
The startup was expected to utilise the fresh funds raised from the IPO to expand its cloud kitchen network, adding over 66 new kitchens to its kitty
Curefoods marginally narrowed its net loss to ₹172 Cr in FY25 from ₹170 Cr in FY24, while total revenue rose 27% to ₹775.4 Cr from ₹635 Cr reported in FY24
Cloud kitchen startup Curefoods
has put its IPO plans on hold amid the ongoing turmoil in the Indian equities market and concerns over its potential valuation.
The Olio’s Pizza owner had secured SEBI’s nod to proceed with its public listing in October last year.
Citing sources, ET reported that mutual funds were not aligned with the ₹4,000 Cr (about $419 Mn) valuation sought by Curefoods during its roadshows, especially due to the current market conditions.
As per its DRHP, the startup’s IPO was to comprise a fresh issue of ₹800 Cr and an offer for sale (OFS) of up to 4.85 Cr equity shares by early investors like Accel, Chiratae Ventures, Nordstar Partners, Iron Pillar, Alteria Capital, and Curefit Healthcare.
“In a market like this, especially for loss-making companies, it is hard to get a good premium, and they were seeking a ₹4,000 Cr valuation… They have decided to hold it, and will attempt to get listed next year, if the markets are better. They don’t immediately need capital infusion,” the report quoted a person close to the discussions as saying.
Questions sent to Curefoods remain unanswered till the time of publication. The story will be updated on receiving responses.
The startup was expected to utilise the fresh funds raised from the IPO to expand its cloud kitchen network, adding over 66 new kitchens to its kitty for its existing brands like Olio’s Pizza and Krispy Kreme, for which it had allocated ₹152 Cr.
The startup’s losses jittered investors, especially as it was also the first cloud kitchen platform looking to go public. Its main rival Rebel Foods was also said to be eyeing an IPO but there have been no updates on it.
Curefoods marginally narrowed its net loss to ₹172 Cr in FY25 from ₹170 Cr in FY24, while total revenue rose 27% to ₹775.4 Cr from ₹635 Cr reported in FY24.
Founded in 2020 by ex-Flipkart executive Ankit Nagori, the startup’s inception came when it broke off from fitness startup Cult.fit. Initially operating under the name Eat.fit, which was also the only brand under its umbrella, the startup has since grown to become a complete house of brands following an elaborate acquisition strategy for expansion.
At the time of filing its DRHP, Curefoods operated through 502 service locations across over 70 cities in India, which included five central kitchens, 281 cloud kitchens, 99 kiosks, 122 restaurants and 13 warehouses. It operates over 20 brands, including Rolls On Wheels, Cake Zone, Canteen Central, Nomad Pizza, among others.
It has raised $150 Mn to date from the likes of Accel, Iron Pillar and 3State Ventures, including a pre-IPO round of ₹160 Cr in September last year.
Source: Inc42 - Startups
